Pure Asset Management Facility Key terms: • Interest Rate: Remains at 9.50%. • Maturity Date: Extended to March 2027. • Minimum Cash covenant: Cash on hand of $750,000 to be maintained at all times • EBITDA Covenant: Specific targets to be met quarterly from 31 March 2025 onwards.
Amortisation Schedule: • March 2025: Repay $1,000,000, leaving a total loan balance of $4,000,000. • September 2025: Repay $750,000, leaving a total loan balance of $3,250,000. • March 2026: Repay $1,000,000, leaving a total loan balance of $2,250,000. • March 2027: Repay $2,250,000, fully repaying the loan.
Now here is the interesting thing.
According to the 2024 Annual Report 9m Warrants convert to SPA shares at 22.7c but must be exercised by 18 March 2025. The remaining 2m Warrants convert to SPA shares at 50c to be exercised by 31 December 2026.
The $64 question within the next month "Will PAM exercise the 9m Warrants to Shares thereby wiping out the $5m debt owed?" If you are sitting on the PAM investment committee what would you recommend?
SPA Price at posting:
16.5¢ Sentiment: Buy Disclosure: Held
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